As your e-commerce business grows, it’s likely that you will need to register for GST/VAT in foreign countries as your sales exceed the distance selling thresholds. The distance selling threshold for Australia is AUD$ 75,000. It’s worth noting that similar to registering for VAT in the UK, it isn’t the case that you should register for GST when your Australian sales have exceeded AUD $75,000 but when you forecast them to. For example, if you’ve turned over AUD$ 50,000 in 3 months, you’ll probably need to register.
Another consideration if you’re trading in Australia is that it may be in your interest to form an Australian subsidiary rather than registering your UK company for Australian GST. For that reason, if you’re trading in Australia, it will likely be worth having a chat with Reuben.
